Hero FinCorp, the retail lending arm of Hero MotoCorp, has unveiled its plans to raise Rs 1,000 crore in a fresh round of funding from private equity (PE) investors.

Singapore investment firm, Temasek Holdings Pvt. Ltd., and India-focused PE fund, ChrysCapital LLC are in the final stages of talks with Hero FinCorp.

Hero FinCorp’s promoters may sell about 20-25% stake for $100-120 million. The funded amount will be used for expansion of business and diversification to non-organic areas. As part of the deal, Hero FinCorp could dilute partial stake for raising this money.

Currently, Hero MotoCorp has 40% stake in Hero FinCorp.

The non-banking finance company (NBFC) has a presence at over 1,000 retail financing touch-points across Hero MotoCorp’s network and has partnered with more than 200 satisfied corporate clients.